Redefine's bid for the portfolio is via Outward Investments, a wholly owned subsidiary.

Peter Penhall, Redefine's chief executive, said linked unit holders of both firms had approved the transaction in separate meetings last week.

The transaction was now only subject to competition authorities' approval, which was expected on or before December 15.

The transaction would be funded by cash and the issue of Redefine linked units at R2.47 a linked unit.


The deal includes a buyback of 14 million RL Props linked units from Outward Investments.

Penhall said the deal would grant Redefine ownership of a portfolio that offered significant income and asset growth through 24, mainly A-grade, office properties and three retail centres.

The retail centres are the Post House and Wedge Shopping Centre in the Bryanston Wedge growth areas, and the Corporate Shopping Centre in Midrand.

Vacancies in the RL Props portfolio, which had been partially discounted in the purchase price, represented 4.5 percent of gross lettable area.

'Many of the properties comply with Redefine's preferred criteria of single-tenanted, long-lease structures, with the lease expiry profile falling mainly in the three to five category.

'The few properties which fall outside Redefine's core property ownership criteria will be upgraded prior to disposal to ensure a maximum return on investment,' Penhall said.

Another outcome of the transaction was that Redefine had reduced its investment in RL Props from 28.7 percent to 15 percent.

A more focused RL Props reverted to its original role of a land and property developer.

The transaction's apparent minor dilutionary effect in earnings during the 2003 financial year would be offset by perceived opportunities to enhance earnings within the portfolio.

Penhall said the acquisition would raise Redefine's asset base to R2.2 billion.

Redefine's stock closed 5c up at R2.65 yesterday.